Brexit and the fintech revolution in Europe: lessons from  the Bulgarian digital finance sector

By: D. Radev, G. Penev. Competitiveness Review, DOI: 10.1108/CR-07-2022-0108, July 2024.

Abstract: “Purpose - This paper aims to investigate the drivers of the resilience of the fintech sector in emerging Europe (EU) by analyzing the performance of 128 Bulgarian fintech companies in the period around the Referendum for Brexit in 2016. The Referendum was followed by a rapid growth of the Bulgarian fintech sector at a moment when venture capital funding was limited, which challenged firms to improve their fundamentals. Design/methodology/approach  - This empirical paper uses descriptive and panel data analysis based on the firm balance sheet and income statement data at the annual level. Findings  - The results show that larger and better-capitalized firms, which outsource their non-core activities and focus on their main competitive strengths, tend to have higher operating income and profit. The authors also find positive real-economy effects as these companies hire more actively to maintain growth. The results are primarily driven by the post-Brexit period of 2016–2019 when the authors find a tighter link between performance and firm fundamentals. These results have important managerial and policy implications and provide interesting directions for future research. Practical  implications - The findings have important management and policy implications. The authors argue that the flexibility of the Bulgarian fintech cluster, including the practice of Bulgarian fintech startups to outsource non-core activities; the readiness of universities to open new master programs to address firm demand for skilled labor and the startup-friendly environment in the main cluster hotspot, Sofia, has contributed to the resilience of the sector and can explain the drivers behind our findings. Fintech firms are very efficient in utilizing external services to foster their performance and growth, which may suggest that public policies that provide financial support for cloud services and outsourcing for startups during downturns or crises may improve economic growth and may have positive externalities for the supporting sectors that provide these services. Originality/value - This paper fulfills an identified need to study the drivers of Fintech performance to identify best practices for managerial actions during economic or political crises, as well as government policy recommendations. To the best of the authors knowledge, this is one of the first empirical academic studies that examine the impact of Brexit on the European Fintech sector and real economy. The identified managerial strategies for ensuring regional resilience to economic crises and political shocks can be applied in various settings within and outside the EU.” [ABSTRACT FROM AUTHORS]

Industry 4.0 and sustainability: the  case of the Italian textile district of Prato

By: R. Ferlito. Competitiveness Review, DOI: 10.1108/CR-08-2023-0202, June 2024.

Abstract: “Purpose - The purpose of this paper is to analyze the twin transition of textile firms operating in an industrial district. The twin transition comprises two interconnected but distinct processes: the sustainable transition and the digital transition. The study specifically considers sustainability goals in terms of the triple bottom line and digitalization as the adoption of Industry 4.0 (I4.0) technologies. The study aims to understand how the characteristics of Italian districts influence the choices related to the twin transition and how it affects textile industrial firms. Design/methodology/approach - The author conducts a multiple-case study involving five firms of industrial textile district of Prato. Findings - The results show the relationship between the characteristics of the district, such as fragmentation of the supply chain, lean manufacturing, territorial proximity and attachment to origins and traditions and the sustainable goals and I4.0 technologies adoption. Moreover, the study proposes a framework for twin transition. Market and technology drive the process in which sustainability represents the aim, I4.0 serves as enablers and the relevant outcome is the implementation of the business model innovation. Practical implications - These findings offer valuable insights for textile firms, policymakers and stakeholders seeking to navigate the complexities of twin transition. Originality/value - The study contributes to the broader topic of twin transition. In particular, it links the particular context represented by the industrial district in which the textile firms operate to their conduct, and the two interconnected and distinct processes, sustainable transition and digital transition, with the business model innovation topic. [ABSTRACT FROM AUTHOR]

Do we have to choose between economic or environmental  performance? The case of the ceramic industry cluster

By: T. Vallet-Bellmunt, V. Del-Corte-Lora, M. T. Martínez-Fernández. Corporate Social Responsibility and Environment Management, DOI: 10.1002/csr.2890, June 2024.

Abstract: “A growing number of academic studies are focusing on firms' sustainability orientation, organizational resilience, and social capital. A key challenge facing companies today is how to maintain or improve economic performance while becoming more sustainable. This research relates sustainability orientation, organizational resilience, and social capital to economic and environmental performance in the ceramic industry cluster of Castellón, Spain. It also analyzes the mediating effect of organizational resilience on the relationship between social capital and both types of performance. The results show that sustainability orientation is linked to environmental performance, while social capital and organizational resilience are linked to economic performance. The results of the analysis of the mediating effect of organizational resilience differ depending on the type of performance. These findings thus suggest that companies should decide what kind of results they want to prioritize in order to direct their efforts at a strategic level, focusing on organizational resilience and social capital if they want to achieve better economic results and on sustainability orientation if they want to improve their environmental performance. This research contributes to the academic literature on environmental and sustainability issues.” [ABSTRACT FROM AUTHORS]

An analysis of the Advantage Effect  of Sport Health Industry Clusters and Research on the Optimisation of Public  Service Systems Based on Complex Network Theory

By: Z. Yao, M. Cao. Journal of Sport Psychology, Vol. 33, No. 2, pp. 58-66, July 2024.

Abstract: “The collaboration between economic units in the sports health industry leads to increased efficiency compared to individual businesses. Additionally, the concentration of these units in a specific region promotes division of labor and cooperation within the industry. The current body of research on the sports health industry, which encompasses both public welfare and commercial aspects, remains inadequate. Specifically, there is a lack of information on how to establish a robust and efficient public service system that can contribute positively to the growth of sports health industry clusters. For this reason, this article examines the positive impact of the sports health industry cluster and investigates the improvement of the public service system using complex network theory. It also establishes a network for expanding the sports health industry cluster, providing a basis for further analysis and research. An extensive public service system was established for the sports health industry cluster, allowing for a thorough quantitative analysis of its impact. A new three-stage mathematical envelope analysis model was developed to assess the overall efficiency of the newly established basic industrial capacity of the sports health industry cluster. In this report, we present the analysis results of various sports health industry clusters and public service systems. We examine the growth and impact of sports health industry clusters under different circumstances and put forth several recommendations to enhance the spillover effect of innovative technology and improve the quality of scientific and technological services. To optimise the industrial chain at the base, it is crucial to strengthen cooperation between enterprises at the core network level. This will contribute to the advantage effect analysis of the sports health industry cluster and the optimisation of the publishing service system.” [ABSTRACT FROM AUTHORS]

The Impact of Industrial Clusters’  Quality on the Production Resilience in the Global Crisis

By: C. Young Ju, L. Chang-geun, Y. Jun-Young, K. So-Young, P. Hee-Jun. Journal of Korean Society for Quality Management, DOI: 10.7469/JKSQM.2024.52.2.287, June 2024.

Abstract: “Purpose: This paper aims to verify the difference in production resilience between local clusters and regions without clusters before and after a major crisis. Furthermore, this paper aims to identify the clusters’ quality factors that impact clusters’ shock vulnerability and resilience. Methods: Utilizing open-source data from the US Cluster Mapping platform, this paper compares regions with industrial clusters to those without using the Differences-in-Differences (DID) estimator. It considers

the regions with industrial clusters as a treatment group and others as the control group, comparing the period before and after the pandemic. Additionally, the paper examines which cluster factors make a difference in economic resilience during the crisis using Regression Discontinuity Design (RDD). Results: The study finds that regions with industrial clusters show higher production resilience compared to regions without clusters. Moreover, the number of establishments, annual payrolls, and employment can have a positive impact on resilience during the pandemic shock. Conclusion: Though clusters could be vulnerable during the global crisis, industrial clusters can contribute to regional economic development and production resilience in the long-term aspect. Thus, it is required to construct a high-quality local cluster and support it during the economic crisis in the long-term aspect.” [ABSTRACT FROM AUTHORS]

Innovating for a better world: examining regional policies  in response to societal challenges

By: F. Belussi, I. De Noni, E. Sabbadin. European Planning Studies, DOI: 10.1080/09654313.2024.2356268, July 2024.

Abstract: “Innovation and technological advancements have always enabled individuals, companies, and regions to address societal challenges more effectively. Regional innovation policies have consistently supported and accelerated these advancements, playing an increasingly important role in promoting sustainable and responsible innovation in a changing world. Over the past decades, the Regional Innovation Policies Conferences have been significant events for researchers, policymakers, and practitioners. These conferences have provided a platform to discuss the strengths and weaknesses of existing policies and to explore new ideas and potential improvements. This special issue summarizes key contributions from the 16th edition of the conference, focusing on the role that regional innovation policies can play in addressing future challenges. It places particular emphasis on radical and sustainable innovation, and discuss the way European regions and clusters can remain innovative and competitive in the face of global rivalry.” [ABSTRACT FROM AUTHORS]

Personality and regional innovativeness: An empirical analysis of German  patent data

By: L. Reher, P. Runst, J. Thomä. Research Policy, DOI: 10.1016/j.respol.2024.105006, July 2024.

Abstract: “This paper brings together the literature on regional variability in innovation activity with studies on the role of personality for regional innovativeness. Building on regionally aggregated levels of individual Big Five personality traits obtained from the German Socio-Economic Panel and the Big Five Project, we find that only extraversion has a positive effect on patenting in German regions. This effect is particularly strong in the case of lagging regions. We interpret this finding as an indication of the compensatory role of collaboration for the innovativeness of lagging regions characterized by low levels of business research and development (R&D) and a dominance of small and medium-sized enterprises (SMEs), which demonstrates the need for place-sensitive policies that consider different modes of innovation and emphasize interregional and intraregional learning.” [ABSTRACT FROM AUTHORS]

Science and technology parks and their heterogeneous effect on firm  innovation

By: M. Anton-Tejon, A. Barge-Gil, C. Martinez, A. Albahari. Journal of engineering and Technology Management, DOI: 10.1016/j.jengtecman.2024.101820, July 2024.

Abstract: “Science and Technology Parks (STPs) have proliferated in many countries as a policy initiative to foster innovation. Previous studies have mostly analysed average effects on the innovation performance of tenant firms, leading to mixed results. This paper aims to explore whether there are heterogeneous STP effects. Creating a novel database of Spanish patents generated on- and off-park, merged with firm and STP characteristics, we find that younger and larger firms benefit more from being on-park and younger and older STPs have a stronger effect on tenants’ patent quality, while STPs promoted by universities do not exhibit a differential effect.” [ABSTRACT FROM AUTHORS]

The role of commercial agriculture in meeting sustainable development  goals in South Africa: Evidence from municipal-level total factor productivity  analysis

By: O. Temoso, L. W. Myeki, C. Motlhabane, B. O. Asante, R. A. Villano. Journal of Cleaner Production, DOI: 10.1016/j.jclepro.2024.142723, July 2024.

Abstract: “Improving agricultural productivity is critical, both locally and globally, particularly in the pursuit of the Sustainable Development Goals (SDGs) of eradicating poverty (SDG 1), increasing food production for food security (SDG 2), and promoting efficient use of agricultural resources and sustainable farming practices (SDG 12). This study examines and compares total factor productivity efficiency (TFPE) in the South African commercial agricultural sector, along with its drivers, using local municipal-level data. We used the Färe-Primont index to assess municipalities' TFPE levels, considering both traditional (economic) factors (labour, land, and operating expenses) and environmental variables (temperature, rainfall, and soil moisture index). Our TFPE index results are not only lower, but they show more variation across municipalities than the economic TFPE index, which is commonly used in agricultural productivity research. This implies that ignoring environmental variables may bias analysis; therefore, future studies should consider including environmental factors in their analyses. We then used hierarchical clustering to group municipalities with similar TFPE levels and components, followed by fractional regression to identify the drivers of efficiency levels. The cluster analysis results reveal that the best-performing municipalities are in cluster 4, comprising municipalities from the Western Cape Winelands specialising in horticulture production, municipalities near urban areas with better market proximity, those engaged in the global value chain, and those with a high proportion of farmers who own most of their farmland. Furthermore, the fractional regression results show that age, gender, race, market proximity, land use types, and production diversification are significant drivers of TFPE and its components. Our study offers insights into the divergent agricultural TFPE performance among municipalities and the underlying factors causing these disparities. The findings can inform the development of targeted strategies, particularly at the local level, aimed at enhancing agricultural productivity and making significant contributions to achieving the SDGs.” [ABSTRACT FROM AUTHORS]